- Understanding Commercial Property Insurance Coverage
- Why Was My Commercial Property Claim Denied?
- Bad Faith Tactics Sometimes Used By Insurance Companies
- How to Negotiate a Commercial Property Insurance Dispute
- Our Lawyers Can Help Commercial Policyholders Recover From Disaster
A wide variety of devastating damage can affect your business. Whether you are facing high-velocity winds or the aftermath of a natural disaster, filing a property damage claim can spare your company from business interruption losses.
With the global commercial insurance market having a $692.33 billion valuation in 2020 and with the total United States property and casualty insurance market at $652.84 billion in 2022, the sheer size of the market is hard to grasp. Of that $652 billion, net premium percentages show that commercial property insurance is approximately half of the total market.
Despite the vast liquidity in the market, your insurance agent may do everything possible to deny your valid claim.
If your insurance company denies your claim or gives you a lowball offer after an unforeseen event, Nessler & Associates can help you pursue fair compensation. A qualified insurance attorney at our law firm can go over your commercial property insurance policy and negotiate with the insurance company for a fair settlement.
Understanding Commercial Property Insurance Coverage
Commercial property insurance coverage protects businesses from damage to their office buildings, business assets such as office equipment, and personal property. They protect against losses such as theft, smoke damage, wind damage, storm damage, and water damage from burst pipes.
The amount of property insurance coverage is based on the property’s needs, including how the owners can prevent financial losses in an unforeseen event. Commercial property policies typically include the following common types of coverage:
Building coverage
This type of coverage protects office buildings and permanent fixtures on their property. The buildings’ total insured value may determine the terms and conditions of this coverage.
Business property
Your business physical assets, such as inventory, office equipment, and furniture, are covered under business property as part of your commercial property insurance policy.
Personal property
This optional coverage extends to the personal property under the care of the commercial property owner. Some commercial property owners may not need this type of coverage if they operate on a separate commercial property.
Some insurance companies may provide additional coverage, such as terrorism, builders risk, inland marine, and cargo insurance. It is important to consider the value of your property and all the coverages you have in your commercial property insurance policy when putting together your claim.
Why Was My Commercial Property Claim Denied?
As a business owner, commercial property insurance is an important tool for protecting your investment. If your insurance carrier denies your claim, these can be among the many reasons they did so:
- The policy did not cover the damage: Make sure to read your policy carefully so you know what is and isn’t covered. For example, many policies exclude damage caused by floods or earthquakes.
- Your commercial insurance provider claims that the damage isn’t severe enough: Most policies have a minimum amount of damage that must be present before processing a claim.
- You didn’t meet the policy requirements. Many policies require you to take measures to prevent further damage, like boarding up a broken window before they will process a claim.
Bad Faith Tactics Sometimes Used By Insurance Companies
There may be times when the insurance industry uses bad faith tactics against business owners to impose low settlement offers. Insurance companies may minimize their payouts through these tactics:
- Denial of your claim
- False statements about your insurance policy’s coverage
- Inattention to evidence of your losses and property damage
- Undervaluation of your claim
- Delays in payment
Commercial property owners must be careful to protect their rights and ensure they receive the full amount of compensation to which they are entitled. An experienced attorney can help level the playing field and fight for the best possible outcome in your case.
How to Negotiate a Commercial Property Insurance Dispute
It’s important to know your rights and responsibilities when discussing a claim with your insurance company. Here are some steps you can take if you find yourself in a dispute over your property damage claim:
Review your insurance coverage
Make sure all losses you claim are insured under your insurance policy terms and check if you have paid your insurance premiums. See if the evidence you included with your claim, such as photos and videos, demonstrates the type of loss incurred. Evaluating your commercial insurance policies ensures you have a valid insurance claim.
Contact the insurance company
The commercial insurance company must provide an explanation in a denial letter. After reviewing the reasons for the denial of your claim, contact the insurance adjuster handling your claim. The adjuster must explain how the insurance company arrived at its conclusion regarding your claim.
Ask for another review of your claim
You can ask the adjuster to re-evaluate or investigate an unfair claim decision. If made within specified time limits of your insurance policy, the adjuster may grant this request.
If the insurer refuses to cooperate or stops all communication with you, an insurance claim dispute lawyer can negotiate on your behalf and prevent any obstacles from standing in your way.
Our Lawyers Can Help Commercial Policyholders Recover From Disaster
If you have a valid commercial property insurance claim and your insurer refuses it, hire a law firm that understands the commercial claims process.
At Nessler & Associates, our lawyers can help you navigate the claims process and move to further legal action. We can help you determine how much your case may be worth and meet all deadlines for recovering the damages that are rightfully yours.
Contact our law firm at (800) 727-8010 to schedule a free, confidential consultation today and learn your next steps to getting the insurance settlement you deserve for your losses.
